| Moonlite (Pak) Limited |
|
|
|
|
|
|
|
|
| Annual
Report 1998 |
|
|
|
| CONTENTS |
|
|
| COMPANY
INFORMATION |
|
| NOTICE
OF MEETING |
|
| DIRECTORS'
REPORT |
|
| AUDITORS'
REPORT |
|
| BALANCE
SHEET |
|
| PROFIT
& LOSS ACCOUNT |
|
| CASH
FLOW STATEMENT |
|
| NOTES
TO THE ACCOUNTS |
|
| PATTERN
OF SHARE HOLDING |
|
|
|
| COMPANY
INFORMATION |
|
|
| BOARD
OF DIRECTORS |
MR. TAR H. ISMAlL |
|
(Chairman & Chief
Executive) |
|
|
|
MR. ABDUL AZIZ T. ISMAlL |
|
|
|
MR. ASHRAF T. ISMAlL |
|
|
|
MR. M. SOHAIL UMER |
|
|
|
MR. SHAHID UMER |
|
|
MRS. NASREEN ASHRAF |
|
|
MS. AALIYA K. DOSSA |
|
(N.I.T. Nominee) |
|
|
| AUDITORS |
|
RAHIM IQBAL RAFIQ &
CO. |
|
|
|
Chartered Accountants |
|
|
|
|
| BANKERS |
|
MUSLIM COMMERCIAL BANK
LIMITED |
|
|
|
ASKARI COMMERCIAL BANK
LIMITED |
|
|
|
BANK AL-HABIB LIMITED |
|
|
|
UNITED BANK LIMITED |
|
|
| REGISTERED |
|
F- 120, Hub River Road, |
|
| OFFICE
& MILLS |
S.I.T.E., Karachi-75730 |
|
|
|
| NOTICE
OF MEETING |
|
|
| Notice
is hereby given that the 28th Annual General Meeting of the Shareholders of |
|
| Moonlite
(Pak) Ltd. will be held at Registered Office of the Company F-120 Hub River |
|
| Road,
S.I.T.E., Karachi-75730 on Monday December 07, 1998 at 11'00 a.m. to transact |
|
| the
following business: |
|
|
| 1.
To confirm the minutes of 27th Annual General Meeting held on December 18,
1997. |
|
|
|
|
| 2.
To receive and adopt the Directors' Report and Audited Accounts of the
Company for |
|
| the
year ended June 30, 1998. |
|
|
|
| 3.
To appoint Auditors and fix their remuneration. |
|
|
|
|
| 4.
To elect seven Directors in accordance with the provision of section 178 of
the |
|
| Companies
Ordinance, 1984 for a period of three years. The retiring Directors are: |
|
|
|
|
| (1)
Mr. Tar H. Ismail |
(2) Mr. Abdul Aziz T.
Ismail |
(3) Mr. Ashraf T. Ismail |
|
| (4) Mr. M. Sohail Umer |
(5) Mr. Shahid Umer |
|
(6) Mrs. Nasreen Ashraf |
|
| (7)
Ms. Aaliya K. Dossa (NIT NOMINEE). |
|
|
| 5.
To approve the remuneration payable to the Chief Executive and other
whole-time |
|
| working
Directors. |
|
|
|
|
By Order of the Board |
|
| KARACHI |
|
|
TAR H. ISMAlL |
|
| October
28,1998 |
|
|
CHAIRMAN & CHIEF EXECUTIVE |
|
|
|
|
|
|
|
| NOTES: |
|
|
| 1.
The share transfer books of the company will be closed from November 23, 1998
to December 08, 1998 |
|
| (both
days inclusive). |
|
|
|
|
|
|
| 2.
A member of the company entitled to attend and vote in meeting may appoint a
proxy and vote for him/her. |
|
| A
proxy must be a member of the company and in order to be effective must be
received by the company |
|
| not
less than 48 hours before the time of holding of the meeting. |
|
|
| 3.
The number of Directors to be elected shall be seven. Any person who seeks to
contest election as Director |
|
| must
file with the company at its Registered office a notice of his intention and
offer himself for election. |
|
| Such
notice must be filed with the company not later than 14 days before the date
of Annual General |
|
| Meeting. |
|
|
| STATEMENT
UNDER SECTION 160 OF THE COMPANIES ORDINANCE, 1984 |
|
|
| This
statement sets out the material facts concerning the Special Business to be
transacted at the Twenty-eighth |
|
| Annual
General Meeting of Moonlite (Pak) Limited to be held on December 07, 1998. |
|
|
| Approval
of the shareholders will be sought for the remuneration payable to the Chief
Executive and other four |
|
| whole-time
working Directors in accordance with their terms and conditions of service.
For this purpose it is |
|
| intended
to propose that the following resolution be passed as an Ordinary Resolution,
namely. |
|
|
| "RESOLVED
THAT the Company hereby authorises the holding of offices of profit and
payment as remuneration |
|
| to
Mr. Tar H. Ismail, Chief Executive, and M/s. M. Sohail Umer, Ashraf T.
Ismail, A. Aziz T. Ismail and Shahid |
|
| Umer
whole-time Directors, not exceeding in the aggregate Rupees 2.4 million per
annum, inclusive of perquisites |
|
| and
benefits to which they are entitled under their term of employment, and for
the remainder of their term |
|
| remuneration
per annum not exceeding the said amount as increased by the sums that may be
applicable under |
|
| respective
terms of employment. |
|
|
| FURTHER
RESOLVED THAT in the event of any of the aforesaid offices of profit falling
vacant, the approval |
|
| hereby
given shall, subject to the terms of appointment, be equally applicable to
any other person appointed to fill |
|
| such
vacancy". |
|
|
|
| DIRECTORS'
REPORT |
|
|
| On
behalf of the Board of Directors, I welcome you to the 28th Annual General
Meeting of the company and take |
|
| opportunity
to present the Annual Report together with the audited accounts for the year
ended June 30, 1998. |
|
|
|
|
|
1998 |
|
| 1.
FINANCIAL HIGHLIGHTS |
|
|
Rupees |
|
| Loss
before taxation |
|
|
2,100,304 |
|
|
|
|
| Add:
Taxation |
|
|
| Current
Year |
|
|
1,202,239 |
|
| Prior Years |
|
|
389,876 |
|
|
|
|
---------- |
|
|
|
|
1,592,115 |
|
|
|
|
---------- |
|
| Loss
for the year after taxation |
|
3,692,419 |
|
|
|
|
========== |
|
|
|
|
|
|
| 2.
OPERATING RESULTS |
|
|
|
|
|
|
| 2.1
Depressed conditions prevailed during the year therefore sale declined from
Rs. 248 million to Rs. |
|
| 228
million. Raw wool the raw material input cost increased disproportionately
whereas |
|
| corresponding
selling price of woolen yarn could not be passed to carpet manufacturers |
|
| consequently
the G.P. after processing receipts decreased from 21.78% to 19.24% showing
net |
|
| decrease
2.54%. |
|
|
|
|
| 2.2
Continues devaluation of PKR coupled with uncertainty thereof continued to
witness upward trend |
|
| in
input costs. |
|
|
| 2.3
Free import of carpet and blankets blantantly affected our manufacturing.
Diplomatic bonded |
|
| warehouses
have become the umbrella for importers where duty free import is allowable
and the fact |
|
| has
been brought to Government Functionaries. |
|
|
| 2.4
It is very relevant to highlight the tariff policy of our product blankets,
where finished blanket was |
|
| importable
@ 65% and gradually decreased to 45% and now the duty is 25% whereas the raw |
|
| material
was importable @ 35% is maintained at 35%. Under the obvious situation will
anybody opt |
|
| for
manufacturing? |
|
|
| 2.5
Earning per share at the year end computes in negative Rs. 1.71 because of
after tax loss. |
|
|
| 2.6
Pattern of shareholding is annexed to the report. |
|
|
| 2.7
The zakat payment depends on approval from zakat and ushr wing Islamabad.
Zakat was paid after |
|
| June
30, 1998 as response from the authority was not forthcoming despite our three
reminders sent |
|
| by
registered post. |
|
|
| 2.8
The company has made an assessment of the computer system related to the year
2000 and is |
|
| satisfied
that the same is Y2K complaint. |
|
|
| 3.
FUTURE OUTLOOK |
|
|
|
| Sluggish
conditions coupled with unending upward trend of input costs will have a
definite bearing on |
|
| operating
performance. Visible depressed economic conditions visa vis ongoing smuggling
and tariff policy |
|
| aspects
highlighted as above will continue to hamper the organised industry in
competing the market on a |
|
| level
playing field. |
|
|
|
|
| 4. AUDITORS |
|
|
|
| M/S.
RAHIM IQBAL RAFIQ & CO., Chartered Accountants retire and offer
themselves for |
|
| reappointment
as auditors for the ensuing year. |
|
|
|
| 5.
ACKNOWLEDGEMENT |
|
|
|
| Under
the highly depressed and recessionary conditions, we appreciate the
commitment of our |
|
| workforce
at all levels. The response of our esteemed clients and dealers never let us
down |
|
| despite
sluggish market conditions. We have been always louding the contribution of
MCB and |
|
| PICIC
as banker and lender in our growth over the years. |
|
|
|
|
On Behalf of Board of Directors |
|
|
|
|
|
|
| Karachi |
|
|
TAR H. ISMAlL |
|
| October
28, 1998 |
|
CHAIRMAN & CHIEF EXECUTIVE |
|
|
|
| AUDITORS'
REPORT TO THE MEMBERS |
|
|
| We
have audited the annexed Balance Sheet of MOONLITE (PAK) LIMITED as at June |
|
| 30,
1998 and the related Profit and Loss Account and Statement of Changes in
Financial |
|
| Position
together with the notes forming part thereof, for the year then ended and we |
|
| state
that we have obtained all the information and explanations which to the best
of our |
|
| knowledge
and belief were necessary for the purposes of our audit and, after due |
|
| verification
thereof, we report that: |
|
|
| (a)
in our opinion, proper books of account have been kept by the company as
required |
|
| by
the Companies Ordinance, 1984; |
|
|
|
|
|
|
| (b)
in our opinion: |
|
|
|
|
| (i)
the Balance Sheet and Profit and Loss Account together with the notes thereon |
|
| have
been drawn up in conformity with the Companies Ordinance, 1984 and |
|
| are
in agreement with the books of account and are further in accordance with |
|
| accounting
policies consistently applied; |
|
|
|
|
| (ii)
the expenditure incurred during the year was for the purpose of the company's |
|
| business;
and |
|
|
|
| (iii)
the business conducted, investment made and the expenditure incurred during |
|
| the
year were in accordance with the objects of the company. |
|
|
|
| (c)
in our opinion and to the best of our information and according to the
explanations |
|
| given
to us, the Balance Sheet and profit and Loss Account and the Statement of |
|
| Changes
in Financial Position together with the notes forming part thereof, give the |
|
| information
required by the Companies Ordinance, 1984 in the manner so required |
|
| and
respectively give a true and fair view of the state of the company's affairs
as at |
|
| June
30, 1998; and of the loss and the change in financial position for the year
then |
|
| ended; and |
|
|
| (d)
in our opinion, "Zakat deductible at source under the Zakat and Ushr
Ordinance, |
|
| 1980"
was deducted by the company, and not deposited in the Central Zakat Fund |
|
| established
under section 7 of that ordinance. |
|
|
|
| Karachi |
|
|
RAHIM IQBAL RAFIQ & CO. |
|
|
| October
28, 1998 |
|
|
Chartered Accountants |
|
|
|
|
| BALANCE
SHEET AS AT JUNE 30, 1998 |
|
|
|
|
1998 |
1997 |
|
|
|
NOTE |
RUPEES |
RUPEES |
|
| SHARE
CAPITAL AND RESERVES |
|
|
| authorised
Capital |
|
|
|
| 4,000,000
Ordinary Shares of Rs. 10/= each |
|
40,000,000 |
40,000,000 |
|
|
|
|
| Issued,
subscribed and paid up capital |
3 |
21,595,860 |
21,595,860 |
|
| Reserves |
|
4 |
399,305 |
399,305 |
|
| Accumulated
(loss)/profit |
|
|
(3,467,188) |
225,231 |
|
|
|
|
|
|
---------- |
---------- |
|
|
|
|
18,527,977 |
22,220,396 |
|
|
|
|
|
|
| LONG
TERM LOANS |
|
5 |
14,049,057 |
18,151,901 |
|
|
|
|
|
| LIABILITIES
AGAINST ASSETS |
|
|
|
| SUBJECT
TO FINANCE LEASE |
|
6 |
15,749,982 |
11,931,276 |
|
|
|
|
|
| DEFERRED
TAXATION |
|
|
|
1,800,000 |
1,800,000 |
|
|
|
|
|
|
| CURRENT
LIABILITIES |
|
|
|
|
|
|
|
|
| Short
term finances |
|
7 |
134,903,264 |
115,043,366 |
|
| Current
portion of long term liabilities |
8 |
13,935,840 |
10,048,502 |
|
| Creditors,
accrued and other liabilities |
9 |
103,960,457 |
123,881,898 |
|
| Taxation |
|
|
1,202,239 |
1,300,409 |
|
| Proposed
dividend |
|
|
- |
2,159,586 |
|
|
|
|
---------- |
---------- |
|
|
|
|
254,001,800 |
252,433,761 |
|
| CONTINGENCY
AND COMMITMENTS |
|
10 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
304,128,816 |
306,537,334 |
|
|
|
|
========== |
========== |
|
|
| FIXED
CAPITAL EXPENDITURE |
|
|
|
|
|
| Operating
assets |
|
11 |
69,389,431 |
59,962,527 |
|
| Capital
work- in-progress |
|
12 |
1,200,000 |
16,808,218 |
|
|
|
|
---------- |
---------- |
|
|
|
|
70,589,431 |
76,770,745 |
|
|
|
|
|
| LONG
TERM INVESTMENTS |
|
13 |
25,000 |
25,000 |
|
| LONG
TERM DEPOSITS |
|
14 |
3,079,918 |
2,144,130 |
|
|
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
|
|
|
|
| Stores,
spares and loose tools |
|
15 |
6,410,734 |
6,043,682 |
|
| Stock-in-trade |
|
16 |
143,377,958 |
128,829,405 |
|
| Trade debts |
|
17 |
64,117,609 |
69,184,304 |
|
| Loans,
advances, deposits, |
|
|
|
| prepayments
and other receivables |
|
18 |
15,922,875 |
15,171,799 |
|
| Cash
and bank balances |
|
19 |
605,291 |
8,368,269 |
|
|
|
|
---------- |
---------- |
|
|
|
|
230,434,467 |
227,597,459 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
304,128,816 |
306,537,334 |
|
|
|
|
|
========== |
========== |
|
| The
annexed notes form an integral part of these financial statements. |
|
|
| Karachi |
|
TAR H. ISMAlL |
|
M. SOHAIL UMER |
|
| October
28, 1998 |
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| PROFIT
AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
1998 |
1997 |
|
|
NOTE |
RUPEES |
RUPEES |
|
|
|
|
| Sales |
|
20 |
228,575,255 |
248,560,144 |
|
| Cost
of goods sold |
|
21 |
(192,948,324) |
(202,217,236) |
|
|
|
|
---------- |
---------- |
|
| Gross
profit |
|
|
35,626,931 |
46,342,908 |
|
| Processing
receipts |
|
22 |
10,338,946 |
9,964,817 |
|
|
|
|
---------- |
---------- |
|
|
|
|
45,965,877 |
56,307,725 |
|
|
|
|
|
| Operating
Expenses |
|
|
|
|
|
|
|
|
| Administration
and general |
|
23 |
10,379,768 |
12,796,050 |
|
| Selling
and distribution |
|
24 |
5,559,754 |
5,775,830 |
|
| Financial |
|
25 |
32,999,668 |
31,993,163 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
|
(48,939,190) |
(50,565,043) |
|
|
|
|
|
| Operating
(loss)/profit |
|
|
(2,973,313) |
5,742,682 |
|
| Other
income |
|
26 |
966,798 |
462,937 |
|
|
|
|
---------- |
---------- |
|
|
|
|
|
|
(2,006,515) |
6,205,619 |
|
|
|
|
---------- |
---------- |
|
| Workers'
profit participation fund |
|
|
- |
310,281 |
|
| Workers'
welfare fund |
|
|
93,789 |
103,142 |
|
|
|
|
|
---------- |
---------- |
|
|
|
|
(93,789) |
(413,423) |
|
| (Loss)/Profit
before taxation |
|
|
(2,100,304) |
5,792,196 |
|
| Taxation |
|
|
|
|
| - Current |
|
|
|
|
1,202,239 |
(1,680,980) |
|
| - Prior years' |
|
|
|
389,876 |
(381,996) |
|
| - Deferred |
|
|
|
|
- |
(1,000,000) |
|
|
|
|
---------- |
---------- |
|
|
|
|
(1,592,115) |
(3,062,976) |
|
|
|
|
---------- |
---------- |
|
| (Loss)/profit after taxation |
|
|
(3,692,419) |
2,729,220 |
|
|
|
|
|
| Unappropriated
profit/ (loss) brought forward |
|
225,231 |
(1,844,403) |
|
| Transferred
from reserves |
|
|
- |
1,500,000 |
|
|
|
|
|
|
---------- |
---------- |
|
| Available
for appropriation |
|
|
(3,467,188) |
2,384,817 |
|
| Proposed
Dividend-NIL-(1997: 10%) |
|
|
- |
(2,159,586) |
|
|
|
|
---------- |
---------- |
|
| Accumulated
(loss)/profit carried forward |
|
(3,467,188) |
225,231 |
|
|
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these financial statements. |
|
|
| Karachi |
|
TAR H. ISMAIL |
|
M. SOHAIL UMER |
|
| October
28, 1998 |
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| STATEMENT
OF CHANGES IN FINANCIAL POSITION |
|
| (CASH
FLOW STATEMENT) FOR THE YEAR ENDED JUNE 30, 1998 |
|
|
|
|
1998 |
1997 |
|
|
NOTE |
RUPEES |
RUPEES |
|
|
|
|
| CASH
FLOWS FROM OPERATING ACTIVITIES |
|
| (Loss)/Profit
before taxation |
|
|
(2,100,304) |
5,792,196 |
|
| Adjustment
for: |
|
|
|
|
| Depreciation |
|
|
|
8,070,253 |
7,111,594 |
|
| Provision
for gratuity |
|
|
|
851,864 |
|
| Gain
on disposal of fixed assets |
|
|
(392,635) |
(462,937) |
|
| Financial
charges |
|
|
32,999,668 |
31,993,163 |
|
| (Increase)
/Decrease in working capital |
29 |
(13,286,711) |
12,739,332 |
|
|
|
|
---------- |
---------- |
|
| Cash
generated from operation |
|
|
25,290,271 |
58,025,212 |
|
| Financial
charges paid |
|
|
(30,915,107) |
(32,057,867) |
|
| Taxes paid |
|
|
(1,690,285) |
(2,394,471) |
|
| Gratuity
paid |
|
|
(885,467) |
(3,647,719) |
|
| Long
term loan employees (net) |
|
|
- |
2,356,807 |
|
|
|
|
---------- |
---------- |
|
| Net
cash (out flow)/inflow from operating activities |
(8,200,588) |
22,281,962 |
|
|
|
|
|
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
| Fixed
capital expenditure |
|
(2,098,304) |
(10,709,904) |
|
| Proceeds
from disposal of fixed assets |
|
602,000 |
965,000 |
|
|
|
|
---------- |
---------- |
|
| Net
cash (outflow) from investing activities |
|
(1,496,304) |
(9,744,904) |
|
|
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Lease
finance obtained |
|
|
10,180,029 |
- |
|
| Loan
from directors and their family members |
|
4,106,156 |
- |
|
| Repayment
of long term loans |
|
|
(7,151,000) |
(6,229,000 |
|
| Payment
of lease liabilities |
|
|
(3,531,985) |
(2,823,422 |
|
| Long
term deposits (net) |
|
|
(935,788) |
(703,600 |
|
| Dividend
paid |
|
|
(2,131,831) |
- |
|
|
|
|
---------- |
---------- |
|
| Net
cash inflow/(outflow) from financing activities |
535,581 |
(9,756,022) |
|
|
|
|
---------- |
---------- |
|
| (Decrease)/Increase
in cash and cash equivalents |
|
(9,161,311) |
2,781,036 |
|
| Cash
and cash equivalents at beginning of the year |
(6,643,900) |
(9,424,936) |
|
|
|
|
---------- |
---------- |
|
| Cash
and cash equivalents at end of the year 30 |
|
(15,805,211) |
(6,643,900) |
|
|
|
|
========== |
========== |
|
|
| Karachi |
|
TAR H. ISMAlL |
|
M. SOHAIL UMER |
|
| October
28, 1998 |
|
CHIEF EXECUTIVE |
|
DIRECTOR |
|
|
|
| NOTES
TO THE ACCOUNTS FOR THE YEAR ENDED JUNE, 30 1998 |
|
|
| 1.
STATUS AND ACTIVITIES |
|
| Moonlite
(Pak) Limited was incorporated in Pakistan as a Public Limited Company and
is |
|
| quoted
on Karachi Stock Exchange. The company is engaged in the manufacturing of
woollen |
|
| yarn,
acrylic blankets, synthetic tufted carpets and allied cotton synthetic
products. |
|
|
| 2.
SIGNIFICANT ACCOUNTING POLICIES |
|
|
| 2.1
Accounting convention |
|
|
| These
financial statements have been prepared under the 'historical cost
convention'. |
|
|
| 2.2
Foreign currencies |
|
|
|
| Assets
and liabilities in foreign currencies not covered by forward exchange risk
cover are |
|
| translated
into Pak. rupees at the exchange rates prevailing at the balance sheet date
except |
|
| those
covered by forward exchange risk cover are converted at contracted rates.
Exchange |
|
| differences
are charged to income. |
|
|
|
| 2.3
Staff retirement benefit |
|
|
|
| The
Company operated an unfunded gratuity scheme upto March 31, 1997. Provision
is made to |
|
| cover
the obligation under the scheme upto that date. From April 1, 1997 company
operates an |
|
| approved
contributory provident fund scheme for all eligible employees. The scheme is
administered |
|
| by
Trustees nominated under the relevant Trust Deed. |
|
|
| 2.4
Borrowing costs |
|
|
|
| Borrowing
costs are recognised as an expense in the year in which they are incurred
except |
|
| those
that are directly attributable to the acquisition of a fixed assets. |
|
|
|
|
| The
capitalization of borrowing costs as part of a fixed assets commences when
expenditure for |
|
| the
assets are being incurred; borrowing costs are being incurred and activity
that are |
|
| necessary
to prepare asset for their intended use are in progress. Capitalisation of
borrowing |
|
| costs
ceases when substantially all the activities necessary to prepared the assets
for their |
|
| intended
use are complete. |
|
|
|
|
| 2.5
Taxation |
|
|
| Current |
|
|
|
|
|
|
| The
charge for current taxation is based on taxable income at the current rate of
taxation after |
|
| taking
into account tax credits and tax rebates available, if any, or on the basis
of 0.5% of |
|
| turnover,
whichever is higher. |
|
|
|
|
| Deferred |
|
|
|
|
|
|
|
| The
company accounts for deferred taxation using the liability method on all
major timing |
|
| differences.
However, deferred tax is not provided if it is determined with reasonable |
|
| probability
that these timing differences will not reverse in the foreseeable future. The
deferred |
|
| tax
debits are not incorporated in the financial statements. |
|
|
| 2.6
Fixed capital expenditure |
|
|
|
|
|
|
|
| Operating
assets |
|
|
|
| These
are stated at cost less accumulated depreciation except lease hold land which
is stated |
|
| at cost. |
|
|
|
|
| Depreciation
is charged to income applying the reducing balance method at the rates
specified |
|
| in
operating assets note. |
|
|
| Maintenance
and normal repairs are charged to income as and when incurred. Major renewals |
|
| and
improvements are capitalised, and assets so replaced, if any are retired.
Gain and loss on |
|
| disposals
of operating assets is included in income currently. |
|
|
| Additions
to fixed assets are depreciated for full year irrespective of date of
purchase. No |
|
| depreciation
is charged on fixed assets in the year of their disposal. |
|
